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During the Hellenistic Period, 4th – 1st century BC, the Greeks first developed the taste for art collecting, valuing it for aesthetic purposes rather than religious or civic significance.

The impulse to invest in art however is a new phenomenon. The 17th century diarist John Evelyn noted that ‘even Dutch farmers pay high prices for paintings, which they resell at “very great gains”’.

The digital era is increasingly driven by finance and commodification while art is progressively recognized as a commodity, and being marketed as a lifestyle choice. The commercialization and popularity of the global art market has increased due to its links to the fashion and design industries. Art fairs, now one of the preeminent social and lifestyle events for the wealthy (including collectors, celebrities, tastemakers and influencers) greatly impacts upon art commerce, along with the activities of auction houses.

While people are becoming more sophisticated in their financial and estate planning, there is a global trend in fine art being considered as an alternative investment class for the well-diversified portfolio. There are, however distinctions that set art as an asset class apart from the rest.

Globalization means an enormous and constantly expanding art market, with multiple levels and categories, increasingly open to new investors with small or large budgets. Access to information and buying is easy via auction houses, estate sales, fairs, galleries, dealers, art advisors, and data portals, with increased exposure to digital platforms extending the knowledge, reach and sales of art.

In 1987, Vincent van Gogh’s ‘Irises’ sold for US $ 53.9 million at Sotheby’s New York. It was purchased 40 years earlier for US $ 84,000, which is less than 0.5 million dollars expressed in today’s money terms. This purchase has thus generated an annual real rate of return of about 12 % to the owner.

Weronika Adamowska at the University of Rotterdam, in her 2008 Masters thesis “Art as an Investment” comments upon the above mentioned sale, “The question is whether this case is representative of the whole art market, or just a notable exception. If the answer were given based solely on the news in the media, one could conclude that art outperforms other forms of investment.”

The hype about other exceptional sales at auction, she continues, “Nourishes the widespread belief that money invested in art might yield extraordinary returns. However, as this view is based solely on the superior performance of one particular market segment, it may not necessarily apply to other parts.”

Art is philosophy, psychology, symbolism, politics, beauty, connoisseurship, language, status, a social structure, an addiction, a lifestyle, and so much more than an asset class,” said Evan Beard, the National Art Services Executive with U.S. Trust, Bank of America Private Wealth Management

Beard states in a July 2016 interview one significant factor, “I’ve yet to see a work of art that sold for tens of millions of dollars not accepted by a large swath of the academic and art critical community as historically important or influential.”

The time-tested value appreciation happens for works of art of historical significance and more importantly, the rare intrinsic quality of their aesthetics. Art value appreciation generally occurs over a long-term period (20-30 years), while certain skill sets are crucial in recognizing the next master, or to evaluate and purchase an authentic work at a realistic price. A strategy may then be required to fully capitalize on the investment.

Art valuation is sensitive to economic cycles, but proven works of timeless masters are less prone to this. Art investing usually goes against economic downturns, therefore, it is used as a safe haven (a safer place to put free cash), when the stock market or the economy are bleak, or going through a market bubble.

Art is illiquid. Buying art incurs expenses; advisors and appraisers may be required, insurance, transport, storage, installation, and framing, even restoration.

The undeniable fact, or savings in art that is offered is something that others investments cannot, the opportunity to sit back and enjoy your purchase. The true art lovers objective in collecting art is also to preserve the art and support the artistic talents of a nation, or culture throughout the ages.

Veteran British art dealer Robert Landau once said: “The impulse to collect art arises from a complex amalgam of aesthetic pleasure and connoisseurship, along with status-building and investment. As the market has boomed, the latter factors have become prominent. The decline in connoisseurship means few buyers understand the process.”

The digital era has witnessed a shift in the paradigm away from the elite who once controlled the art market. With global real time information now available and the latest data from every market category open to the masses, and real time bidding available on auctions, the power of control has been reversed. The customer is now in the drivers seat. Connoisseurship is essential however, along with buying the best work and buying early.

Hear more from our experts as they discussion art as investment. Watch Now!

The trend toward globalization is creating an art market that includes a wider array of artist as well as collectors. When it comes to artists, Latin American art provides us a great example of this shift.

Kaeli Deane, Head of Sale for Phillips Latin American Art department, says that Latin Americans typically purchased work created by artists native to their home countries. For example, Mexicans would traditionally buy work from Mexican artists, Brazilians from Brazilian artists, etc. But in the past few years, there have been an increasing number of European and North American art collectors and museums who are taking a closer look at Latin American art. Deane cites several major museum exhibitions and the fact that the MET now has a dedicated curator for Latin American art.

Inclusivity in the art purchasing community is also experiencing its own evolution. Online bidding allows a greater number of collectors to participate in sales spanning the entire globe.

This fundamentally changes the nature of art auctions. John McCord, Specialist and Head of the 20th Century & Contemporary Art Day Sale at Phillips explains that online registration has greatly expanded. He cites an auction in London where a painting sold for over 9 times its initial asking price – mostly as a result of online bidding.

Today, online bidders are able to live stream physical auctions – creating a more dynamic experience never experienced through historical online auctions.

There are an increasing number of online tools enabling collectors to access results and pricing statistics observed in past auctions. This heightened access to data and information is helping more collectors participate in the global market.

But for all of this talk about art auctions and online access, let’s not forget about the art dealer. While auctions play an important role in the overall market, many collectors still prefer to work with an art dealer. As McCord reminds us, we cannot easily replace the long-term relationship and trust that a good dealer can bring to the table. And with the globalization of the art market, it’s indeed a big table.

To learn more about the burgeoning markets for these exciting collecting genres, watch a roundtable discussion with Phillips’ Specialists on Art Market Comparison and Analysis. Watch Now!

With the dual phenomena of increase in art world wealth and the ease of exploiting content online, self proclaimed specialists and bloggers in “art law” and digital copyright law are multiplying.

Recently named one of 51 High Wattage Women in the Art World, Barbara T. Hoffman’s writings and cases have generated legislation, influenced the development of the law and created important precedents for the creators of content, especially visual artists.

Your practice revolves around a wide variety of sectors in the arts and cultural community – what disputes regarding IP are most common in this sector?

Creatives are both users and owners of intellectual property, primarily copyright, in the art and entertainment world. The owner of a copyright has the right to control the use and reproduction of works they created. Most disputes involve the use without permission of my client’s artwork. A good part of my practice involves preventing disputes through careful drafting of collaboration agreements and license agreements. Representing many creatives, entrepreneurs and explorers, I have gained expertise in monetizing content by careful development and protection of intellectual property assets which provide a stream of revenue to finance projects.

In art negotiation environments, what particular skills and expertise make you particularly qualified to lead operations?

My many years of experience and knowledge of the law, enormous network and deep understanding of the way in which the art world operates are invaluable. In addition, I am passionate about what I do and can be extremely persuasive in the negotiations. Finally, I bring the creative mind and spirit of an artist to the solution of complex legal problems for my clients. We are a lean operation and success is in being efficient to reach economic solutions not supporting a mid to large firm structure.

Can you please explain the implications of the Visual Artists’ Rights Act (VARA) in the US, and have you encountered any notable challenges in your work, on the back of this legislation?

My website contains an article on the Visual Artist’s Rights Act and its limited success in protecting artists’ rights in the U.S. It is unfortunate that in public and private commissions, the tendency of the commissioning body is often to request a waiver of the right of integrity and the rights of authorship. Courts have been reluctant to give wide expansion to VARA. Notwithstanding, I have won on one of the few VARA cases; Flack v Friends of Queen Catherine, 139 F. Supp. 2d 526; 2001. (April 18, 2001).

You successfully represented Daniel Morel in a lawsuit against Agence France Presse (including Getty Images, the Washington Post, CNN, ABC and CBS) in 2011 regarding the copyright infringement of the photojournalist’s works from the internet– what were the complexities of the case and the challenges of litigating against such a large corporation?

This was the first case to involve the importance of TOS of Twitter and Twitpic, in an infringement lawsuit. The major media companies settled with us following denial of their motion to dismiss. The issues in this case were complex and it seemed that a strategy was employed to exhaust Mr. Morel’s financial resources. This is often the case in copyright litigation where the creator does not have the deep pocket. As a lawyer I have never been deterred by deep pockets on the other side. Our firm has successfully adopted the David and Goliath model which aims at early victory via summary judgment or settlement to avoid having to engage in protracted litigation and the costs associated discovery, which is mostly all costs in the U.S.

Is there anything else you would like to add?

For more information, please check out the Hoffman Law Firm’s website, especially our blog and recent news at: http://www.hoffmanlawfirm.org/.

Looking for an Art Law Boutique Firm? Contact The Hoffman Law Firm!

Art is one of those investments that pays off in the future and you can enjoy it in the here & now. While you should choose pieces that speak to you, it’s also wise to consider their potential to appreciate in value. But where to start?

Julia Wehkamp and Amanda Dunn are co-founders of One Art Nation, a platform that empowers both emerging and established art collectors to make confident and informed purchasing decisions. By providing accessible and relevant education about the art market, they’re nixing the jargon and cutting out the intimidation factor – so you can get closer to the art collection that works for you.
We asked them how to proceed.

Is an art collection a wise investment for a twenty- or thirty-something woman?
Sure! You’ll always have walls to fill and most women in their twenties and thirties are starting to think about planting some roots by either renting a place on their own or buying their first home. Instead of heading to IKEA, why not think outside the box?

Limited edition prints are a great way to start your collection without breaking the bank. You can also pick up original works for a bargain at satellite fairs in Toronto. Or, if you are up for the challenge, it’s always fun rummaging through the stalls at antique markets looking for gems.

I want to start an art collection, but I’m on a limited budget and have limited space. Where should I begin?
There are ample avenues to start your collection, but art fairs are always a good entrance. You can find art fairs pretty much in every corner of the globe and we have a few great options right here in Toronto. The smaller fairs such as the Artist’s Project that just happened and the Toronto Outdoor Art Exhibition are great for finding less expensive works by offbeat and emerging artists.

Whether your interests lie in paintings, sculpture, photography, or prints, there’s bound to be something that will fit your budget and can work within your space. Additional to art fairs, get on local gallery mailing lists to receive invitations to their openings. It’s a great opportunity to connect with like-minded collectors as well as meet the artist in person. Here is a great video where our experts share strategies for emerging and experienced buyers.

What art trends are you noticing in Toronto?
One of the biggest trends we are noticing is how technology is changing the art world, not only in how artists are creating their work but also in the way collectors are buying and selling. Technology is connecting artists, collectors and experts like never before, whether it be through sourcing platforms or social media channels. At Art New York on May 5 at 3 p.m., we are hosting a panel discussion that will focus specifically on this topic – How Is Technology Changing and Shaping the Art World?

Should we pay attention to these technological trends when developing our own collections?
The art world is getting more innovative as the years pass, so it is in your best interest to tap into the online resources available. From collection management sites to buy/sell platforms, there is no shortage. These new outlets eliminate boarders and provide collectors with access to emerging artists and reputable experts outside of their local markets. One Art Nation is great resource for providing easily accessible, high-quality content by international experts, with a goal to create greater transparency in the art market.

I want my next trip to be heavy with art. Any recommendations?
New York City in May! Not only is it New York Auction Week (when all of the big contemporary sales take place) but Frieze and Art New York and a bunch of smaller satellite fairs also come to town! It’s the perfect time for fair hopping, to attend auction house previews, to visit local gallery openings and of course, hit up all the other great stuff New York has to offer. If you are in town, make sure to stop by Art New York for the One Art Nation Symposium from May 5 to 7, starting at 2 p.m. daily! We offer a whole roster of talks that cover art collecting from A to Z.

One Art Nation’s next event (Buying from an Art Gallery) is on April 13 @ 6 p.m. at Olga Korper Gallery. Reserve your spot!

The original interview was published on She does the City.

As the art world becomes more complex, so does the need for qualified legal professionals. Barbara Hoffman of The Hoffman Law Firm, who practically invented “art law” forty years ago, shares her insights into how this need developed.

You are one of the pioneer practitioners of art law. What are the characteristics of the field of art law?

An art lawyer addresses the subjects of commercial and contract law, international trade, intellectual property, trusts and estates, through the lens of the art world, its activities and players.

For example, I developed the model contract for commissioning works of public and private art in public spaces. Before, real estate, or municipal lawyers prepared contracts as if they were purchasing a toilet fixture. The contracts failed to address key issues in the commissioning of an art work: copyright artists’ rights, a reasonable payment schedule and issues of liability and termination.

Whether representing a collector, developer or an artist, general real estate or commercial lawyers lack familiarity with important concepts. Similarly, your average trust and estate lawyer or commercial lawyer knows little about the donation of art collections or the use of private foundations to secure a collector’s legacy. Finally general commercial law principles do not provide adequate guidance for a collector dealing with stolen art, provenance or authenticity.

What inspired you to develop a specialty in which you had no role models?

There were no art law courses when I became an art lawyer. I was a major in art history at Brown and had studied art from a young age. I was a participant in the Volunteer Lawyers for the Arts as a law student and then proceeded to found the Volunteer Lawyers for the Arts at my law school when I became a professor in Washington. As they say, the rest is history.

When might a collector seek the advice of a specialized art law firm?

The type of advice depends on what is being collected.

Collectors of contemporary and modern art have sought my advice on a variety of issues including setting up private foundations to exhibit and travel their collections for the gift and/or sale of museums, estate planning, auction sales and consignments, private treaty sales, gallery acquisitions, and commissions of large scale, including site specific, works of art and installations.

Other collectors have sought my advice on issues such as authentication and provenance. Collectors of video and performance have other special concerns regarding maintenance and copyright while collectors of Native American art worry about feathers and other collectors worry about provenance.

You work closely with many prominent clients as well as representing foundations and organizations. Are there any specific challenges in representing celebrities, public figures, and government?

With all clients, a lawyer has an obligation of confidentiality. Representing important political, art, entertainment, and religious figures is difficult not only because of the voyeuristic tendencies of the press and the possibility that comments may be distorted. In addition, rights of publicity and privacy are more limited for public figures, particularly when the issues are newsworthy. Representation of countries adds yet another dimension: different agencies have different political agendas. Of course, there are always two sides to a coin: artist clients may be, on the other side of the publicity, privacy dichotomy.

In your work with governments and NGOs focused on cultural heritage and arts preservation, what has been your most rewarding success?

Most of my work in this field is extremely rewarding. If I had to choose I would say that being able to participate in the successful return to a country such as Peru, of its looted cultural heritage, is rewarding both for me and for the recipient country. I have also been participating on the Antiquities Coalition Task Force, which is dealing with issues posed by conflict antiquities and terrorist funding.

Looking for an Art Law Boutique Firm? Contact The Hoffman Law Firm!

What tips could you give to first time art buyers? Why did you start to collect art? How have you grown your collection over the years? Where have you purchased art and do you have a preference?

Joined seasoned Toronto based collector, David Angelo, as he provides advice on building a collection by educating yourself about the process and selecting pieces that tell the story of who you are.

Video recordings from the Toronto Spring Series – Know Your Options are and will be available online. Join us live on April 13 for Part 3 of the series on Buying Art at a Gallery with Olga Korper. We conclude the series on May 24 with a Waddington’s Auction House specialist as they explain Buying & Selling at Auction including a private preview of an upcoming sale. View the full program here.

The camera has been arguably one of the most disruptive technological advancements in art history. From the first cave paintings, art was used to tell stories and record historic events. Then roughly 150 years ago, the camera changed the way we captured the visual world. Suddenly art wasn’t the only way to depict historic events, people, and places. The camera was able to capture all of these moments with amazing precision.

Louis Meisel, President and Director of Louis K. Meisel Gallery in New York, tells us that the introduction of the camera coincided with the beginning of the Post-Impressionist movement. He sees the camera as having enabled the Impressionists to evolve their style. Over time, the academic art world loosened its restrictions on what was acceptable in fine art. This explosion of styles continued until we see the Abstract Expressionist movement in the 1950’s. By the late 50’s and into the 60’s, we see a resurgence of Realism. This in turn led to pop artists like Warhol, Lichtenstein, and other now famous artists.

It was the early to mid 1960’s that saw an increasing amount of work being created directly from postcards and photographs. As the work increased in technical detail, the Photorealist movement was born.

This is where the story of the disruptive camera comes full circle. Now painters were using information captured by cameras to reproduce it. But the art world was reluctant to accept this new form of painting. And no art schools were teaching students how to produce Photorealism. Some even considered Photorealism to be the return of artistic restrictions that had been shed away so many years before.

From the beginning, Meisel has always been a supporter of Photorealism – or what he and others call Postmodern Realism. In his recent talk with One Art Nation, he walks us through Postwar art history in a way that is both imaginative and informative. His closing words are those of wisdom.

In a world that increasingly worries about the future value of art, we should instead concern ourselves with what the art actually looks like – and how the work makes us feel. Before the financialization of the art market, and long before the camera, this is how most people saw art.

To hear more from Louis Meisel on Photorealism, check out our video on WHO IS A PHOTOREALIST AND WHAT IS PHOTOREALISM? Watch Now!

As the art market becomes bigger, faster and more complex, acquiring the services of an art advisor is a great way to navigate the murky waters with confidence. Javier Lumbreras, CEO of Artemundi Management, shares his expertise on collecting for passion and investment, and the increase in demand for art investment products.

What is the difference between collectors vs. investors?
Art collecting is an insatiable passion. It is also a reflection of personality, taste, satisfaction or naïveté. On the other hand, art investors buy with the expectation that an artwork will be revalued as time passes. Investing in art is a one-of-a-kind way to invest in something that’s both portable and personally gratifying. It is also a good hedge against inflationary periods as currency fluctuations are a good asset protection tool. When investing in art, each discipline has its own strategies and each strategy is a collection of different interests and budgets along with varying ways to look at given investments over time. You can also focus on a single artist in relation to others of a particular artistic movement, but in this case, the personal taste doesn’t influence the decision during the acquisition process.

What is your response to those who say that reducing art to a transaction misses “the point” of collecting?
“The important part of collecting art is the education modality, and it is this that drives the transactional modality.” Why deny it? Art collecting is an insatiable passion. Each piece is unique, a sought-after, hard-to-find prize. Being dedicated to collecting can be so satisfying that is can become an individual’s very reason for being. Nevertheless, one must differentiate passion that predominates in art collecting against the rational investment focus dominating in art funds.
From a rational objective perspective, art funds are investment channels conceived as a hedge against inflation, unstable economies, stock market breakdowns and currency fluctuations, while simultaneously producing effective investment returns. They converge each transaction, not only to add portfolio balance (risk diversification), but also to maximize the Sharpe Ratio (return/risk) and to achieve the right combination between short term and long-term liquidity. That is why Deloitte’s and ArtTactic Art and Finance Report 2016 presented that 27% of the wealth managers considered that they have noticed an increase in demand for art investment products from their clients (up from 20% in 2014).

Should lack of liquidity compared to most other traditional financial vehicles be a concern for investors?
It is a natural concern for any investor allocating capital in art to consider its relative illiquidity when compared to most traditional financial vehicles. However, art’s qualities as an investable asset overcome any liquidity matters because of overall long-term benefits in an investment portfolio. Art is an illiquid asset because selling an artwork is not an immediate process and usually involves a complex process to complete a transaction between a buyer and seller. It is precisely its illiquidity that makes it a safe and lowly volatile investment vehicle when compared to traditional investment instruments. This specific characteristic is what makes art such an attractive asset to portfolio managers because of the low correlation with financial instruments. Moreover, in the art market there is a practical impossibility of a collective panic situation, as opposed to stocks that can suffer from a double-digit decline in a single session. For example, we can recall art’s stability was demonstrated during the 2008 recession, when art indexes dropped 4.5%, while the S&P abruptly dropped 37.5%, not to mention that the art market also recovered faster than the stock market. In 2010 the All Art Index increased by 22.6%. In 2011, it grew 10.2% compared to 9.1% for equities.

What is the role of the art market in the current economy? How are art funds performing?
Art funds are a natural market evolution that leads to greater market efficiency and transparency. Funds apportion and reduce the risks of investing in art, unlike what occurs with an independent collector, by way of conforming a diversified portfolio. Funds are also efficient, as they reduce the transactional costs associated with the asset and achieve important economies of scale. Art funds, as an institutionalized art-investment vehicle, brings transparency to the market through rigorous due diligence, arm’s length transactions, and fiduciary duty like no other professional in the art industry.

Furthermore, art collectors see a benefit in art investment funds as a way of gaining broader exposure to the art market. A well-diversified art portfolio, covering works from the Renaissance to contemporary, generates an interesting risk-return balance. Each period has its own characteristics and a different investment profile. For instance, ancient painting has a slow but solid growth, while contemporary art might have a rapid but risky growth. In sum, funds apportion reduce the risks of investing in art, unlike what occurs with an independent collector, by way of conforming a diversified portfolio. In making investments, Artemundi maintains a diversified portfolio to be held for long-term price appreciation, as well as a limited inventory for short-term trading. Proper market analysis also helps to significantly reduce investment risk through the power of expertise and knowledge.

What’s your final tip for those interested in investing in an art fund for the first time?
As the art market becomes bigger, faster and complex, the potential investor should search for a more institutionalized third-party with proven track record and an impeccable reputation such as Artemundi. Reliable and professional art advisory enables fresh consumers to navigate the murky waters with more confidence. Connoisseurship is developed by seeing as much art as possible, both the good and bad. It involves a tremendous effort to keep moving around the world through the art fairs, auctions, museum and gallery exhibitions to keep up with the market and keep sharpening your connoisseurship. The more you see, the sharper your eye becomes, the deeper your understanding develops and the easier it gets to identify the best trustworthy opportunities. Art connoisseurship eventually becomes not just a profession, but a way of life.

Looking for a reputable art advisory? Contact Artemundi.

Not the animal, but an anonymous group of radical feminist female artists known as the Guerrilla Girls.

In 1989, the Modern Art Department of the MET’s public collections had less than 5% of works produced by women. And yet 85% of the nudes were of females.

Gender and racial inequality is an issue that the Guerilla Girls have been focusing on for a long time. Formed in New York in 1985, they have employed highly disruptive tactics in their push to see greater representation of all races and identities. Despite a lot of ruffled feathers in the art world, New York has arguably benefitted from this activism. And there are countless others whose proactive work has fostered an inclusive environment in the New York art scene. The city now sees art from a broader range of ethnicities and cultures including Asian and African. That being said, more progress is still needed; female artists still make up less than half of major museum exhibits.

Another important shift in New York’s cultural scene is an increased interest in art. Today there are more art fairs than ever and attendance at museums and galleries is at an all-time high.

Suzanne Julig is a member of the senior management team at Sotheby’s Institute of Art as Director of Summer Study Program in New York. She sees this shift not only happening in that city but also globally.

By far the largest shift in the cultural fabric of the art world is due to the Internet and social media. Whichever city you’re in, they’ve changed the way art collectors and artists share and appreciate work. Across boarders and cultures, artist and collectors are connecting like never before.

But there is a downside. Isaac Aden, artist and senior curator at KuBe Beacon, explains that while viewing work online can be wonderful, it is never the same as seeing the work in person. This is so true. Since so much art is physical, seeing it in person not only allows the viewer to experience it in greater detail, it also allows for a greater connection to the artists who have poured their souls into it. Which is exactly what the Guerilla Girls have been doing in New York since the 1980s. Pouring their souls and energy into a cause that has arguably shifted the cultural landscape of New York and, to a degree, the world. And this shift was started long before the Internet as we know it even existed.

Join Art Advisor, Suzanne Julig, Gallery Owner, Ethan Cohen and Artist/Curator, Isaac Aden for a lively discussion of the changing face of New York’s cultural scene. Watch Now!

Estate planning involves more than drafting a will and good estate planning and administration involves a variety of skills: a collaboration between the artist and his or her advisors.

Over the years that I have been involved in advising artists, writers, and other creators with respect to the planning of their estates, two of the most difficult decisions for many artists is who will be in charge of managing the artist’s legacy and the artistic assets left behind and who or what is the beneficiary of the estate’s assets- a foundation, a trust or heirs.

As the artist Betty Woodman noted, “It seems there are two things to be concerned about- the wellbeing of the person to whom you give the property and the wellbeing of the property (art).” Many artists are concerned that the family member may not be interested in developing the artist’s legacy, or may not be competent to do so, or would be unduly burdened by the obligations imposed upon them to probate and/or manage an artist’s estate. For that reason, I found the largely anecdotal article by Robin Pogrebin in the New York Times entitled, “Decision Time for Aging Artists” on January 31, 2017, misses the forest for the trees.

For those charged with structuring and managing an artist legacy, the most difficult choice is not necessarily whether to choose an auction house or gallery to represent the estate. The most difficult choice is who will be named in the will if there is one, or by the court if there is not, to collect and sell the estate’s assets, pay the estate’s debts and collect any money owed to the estate and administer and manage the artist’s legacy, including his or her art, intellectual property, and personal archive.

This is the executor. In addition to these various functions, the executor follows the artist’s instructions in the will which may include creating a foundation, selling works at auction, or entering into relations with a gallery. The fundamental duty of the executor is loyalty to the beneficiaries of the estate, or as Peter Stevens, executive director of the estate of David Smith noted, “Choose someone with the most expertise and the least amount of self-interest.”

A Visual Artist’s Guide to Estate Planning states, “Above all, make your executor and any advisors aware of your priorities; choose people who are knowledgeable about the art world and sympathetic to your work, and encourage them to seek advice from other experts whenever necessary.”

A competent and trusted family member should be named as the executor or executrix (the feminine) unless the person has expressed a desire not to be placed in this role or because the person is not competent either by temperament or mental state to be in charge of the artist’s estate. All too often there is a tendency to look to an artist’s trusted professional advisors, the artist’s gallery, the artist’s accountant, or the artist’s lawyer to serve in the role of executor. Absent very specific factors and conditions, such as long-term professional relationships and the lack of any reliable family member to list a few, a family member should be preferred to these professionals. That family member can then hire competent professionals and advisors, including the artist’s gallery. It is at this point where it becomes important to evaluate any long-term artist-gallery relationships, the capacity and commitment of the gallery to working and developing the artist legacy, or the prior long-term relationship held with the gallery.

As auction houses are presently constituted, with their focus primarily on sales of works of art consigned to them by collectors, and for auction or private sales, would not be a first choice to manage an artist’s estate or as the beneficiary of the artist’s assets. Notwithstanding Sotheby’s Amy Cappellazzo’s claim: “We’re not an auction house […] We’re an art business,” whether an auction house can transform its culture into the “care and feeding” of artist’s estates remains a question.

Galleries, unlike auction houses, do more than sell works of art: Galleries, particularly those who have long-term relationships with older artists, committed to an artist’s legacy, may undertake catalogue raisonné; organize exhibitions in the gallery and with museums; prepare publications and archives; and have a strategy which may include buy in of artist’s works at auction.

A second major concern for artists is setting priorities as to who will benefit from the assets of the estate. For the artist whose primary mission is to preserve and create a legacy either solely benefiting the artist and his or her professional reputation or the artist’s reputation and his or her philanthropic goals, the “artist endowed foundation” may be the vehicle of choice. Such foundation may be a private foundation or a private operating foundation. The foundation must be funded with sufficient assets to fulfil its mission and unless a board of directors dedicates enormous sweat equity, for example the Estate of Ree Morton or the Dorothy Dehner Foundation, less than two million dollars in assets may prove an obstacle.

The difficult choices posed by Ms. Pogrebin are left to the expertise of trustees or directors who are often familiar with the art world and its players. These individuals advise on or hire others to advise on catalogue raisonnés, auction sales, and appraisers. Control, however, rests with those most identified with the artist’s interests.

Transactions with both galleries and auction houses who are involved in direct management of estate or foundation assets pose numerous conflict of interest issues which require transparency and oversight. Unlike the conflict of issues which may be raised by direct involvement of a gallery or auction house as the executor, a gallery or auction house may not be absolutely prohibited under state conflict of interest rules from participating. See “The Many Facets of Conflict of Interest” in Ethics and the Visual Arts.

Every artist, however, has an estate plan–either one imposed if the artist dies without a will or one of his or her own careful deliberation and planning. For artists whose oeuvre may not support a foundation or who simply do not wish to create one, the Artist’s Legacy Project offers a solution, if the artist is accepted.

Legacy Artists are painters and sculptors whose estates have been accepted by Artists’ Legacy Foundation’s (ALF) board of directors and entrusted by the artist or artist’s heirs to the Artists’ Legacy Foundation in perpetuity.

For example, since receiving founder Viola Frey’s bequest, the Artists’ Legacy Foundation has enhanced her legacy by supporting and promoting the exhibitions at museums and galleries. The website states,

“Beyond facilitating museum and gallery exhibitions, the Foundation organizes, stores, conserves, and insures all of Frey’s artwork and is creating a working database to make information about her artwork readily accessible; ALF has commenced a long-term project to produce the Frey catalogue raisonné and is organizing the artist’s papers and other archival materials to make them available and accessible to researchers, scholars, and students.”

The model for legacy preservation adopted by ALF also serves as a model for artist-endowed foundations.

Founded in 1985, the Hoffman Law Firm is the preeminent art law boutique, recognized globally by artists, galleries, countries, collectors, museums, creatives, and explorers as the leader in the field of art, sustainable cultural heritage, and intellectual property law.

* © 2017 Banco de México Diego Rivera Frida Kahlo Museums Trust, Mexico, D.F. / Artists Rights Society (ARS), New York

The 2016 Art & Finance report comes at a challenging time for both the art market and the wealth management industry. With art market growth showing signs of slowing toward the end of 2015 and in early 2016, combined with slower economic growth, increasing volatility in the financial markets, and geopolitical uncertainty, the picture is becoming more complex and unpredictable. Maybe it is exactly this uncertainty that draws people toward art, and as this report shows, the awareness and motivation for including art in traditional wealth management are becoming increasingly apparent, although not without its own set of complexities.

39 key opinion formers, representing different key stakeholders in the market, express their expert views on what they believe are opportunities and challenges for the art and finance industry now and in the future.

Presented by Deloitte and ArtTactic, view the Art & Finance report here.

This is the advice from Annelien Bruins and so many other seasoned professionals in the art world. Bruins has worked for over 15 years in the industry and has advised and managed private and corporate art collections around the world. For emerging artists’ work, Bruins believes that collectors should buy what they’ll love and want to live with.

True, some very savvy collectors are able to spot great art investments, but for the most part, this is not the case.

Emerging artists typically don’t have a large breadth of work making it difficult to tell which direction their artwork will take. Furthermore, unlike established artists, emerging artists almost never sell in the secondary art market (international galleries, auction houses, etc.). The silver lining is that the work is more affordable and there’s a lot of it to fall in love with.

There is a huge volume of work from emerging artists. So much of this work includes ideas, narratives, and perspectives; it isn’t just the artists’ work but also the artists themselves that many art collectors take interest in when making a purchase. Jacqueline Towers-Perkins, a Post War and Contemporary Art Specialist, advises everyone to check out art fairs, attend gallery openings, and visit museums. She sees many opportunities for people to educate themselves.

One of the biggest opportunities is the ability to meet the artist in person. It’s something that many collectors do – especially with emerging artists. This is because you can often do a studio visit and learn more about the process and inspirations behind the work. There really is no better way to form a connection.

There are many art fairs, galleries, and museums with amazing work all over the globe. So get out there and check it out. You’ll learn, experience, and probably discover something you absolutely love.

For more hands-on guidance on how to assess emerging art – before you buy, check out our video on Emerging Artists: A Popular Entry-Level Market for Buyers. Watch Now!!

2016 year was a pivotal one for the art and auction world. Saatchi Gallery held its first all-female show in January. David Bowie’s death rendered him one of the most talked-about collectors of the year. The news of the Brexit vote in late June caught the world by surprise, and caused a rippling of concerns across stake-holding nations. The sale of Claude Monet’s Grainstack for $81.4 million in November underscored that even in an uncertain market, collectors will vie at the top level for superior quality.

The Art Market Forecast 2017 presents an overview of art market trends that Artemundi Group have identified to be forecasted in this year. Read the full article here!

For many, art is treated as a commodity and a financial asset. In fact for the past 35 years, much of the growth in the global art market has been the result of the ‘financialization’ of art – art being used as a store of value.

And yet if art is a commodity, it is unlike almost any other commodity in the world. Specifically, it cannot be mass-produced. The closest thing to mass production of art would be a lithograph or a print, which they themselves are often limited in their runs. Furthermore the volume of great art is limited by the ability and time that it takes for great artists to produce it. And even the number of great artists to emerge on the global scene is limited by a variety of factors. This is the other world that art occupies. It’s a world that’s so different from other industries, which makes predicting the growth of the art market quite difficult.

Like any market, art is susceptible to cycles. At its recent peak in 2015, the global contemporary art market was estimated to be around $65 billion. By the end of 2016, the market contracted by several billion with an estimated value between $62 and $60 billion. Michael Phillips Moskowitz, an Entrepreneurship Fellow at Harvard’s Kennedy School of Government, breaks these numbers down for us. According to Moskowitz, just over 200 influential families control half of the global art market, while roughly 3,000 deep-pocketed collectors control and influence the other half. Other than these two groups, there are approximately 30,000 people who, as Moskowitz puts it, “display outwardly and demonstrable inquisitive intent.”

However the $60 billion figure does not include the entire art market. Thomas Galbraith, Partner at The Petraeus Group, consults with start-ups and companies in the luxury and art markets. Galbraith sees great appetite for art among what we might call “more casual collectors”. He believes we’ll see increasing inclusion of this segment into the greater global art market. Galbraith highlights Etsy, Exhibition a, and art.com as sources of market activity that is not included in the $60 billion global art market figure.

Another promising trend in the art world involves transparency. Today’s collectors are increasingly becoming more educated and informed on work prior to buying or selling art.

This results from a growing trend of art services providing market data and analysis for collectors. Companies like Auction Club, Artnet and others are making it easier for collectors to explore, learn, buy, and sell art.

Thankfully, the increasing prevalence and access of information is helping casual art collectors keep both feet planted in reality.

For more insight into contemporary art market trends, watch this discussion on Looking ahead. The Contemporary art market in 2017. Watch Now!

Taxes are waiting for you around every corner. In fact, sales taxes vary by state and rates can reach 10% of a selling price depending on the city/state combination. Whether you’re an art buyer or seller, ignoring these taxes is never a great idea.

The key to understanding how taxes are applied is something called ‘nexus’. No we’re not taking about the boarder entry pass.

Nexus is the term used to describe the necessary connection an entity must have for it to be able to collect a tax. This means that some contact between a retailer/seller and the state must occur. Examples can include any employees or independent contractors working in the state, regular travel to solicit sales, ownership or rental of property (including inventory and equipment) and participation in trade shows. If a seller checks off any of these boxes they have created nexus.

Once nexus has been established sellers are required to register with state tax authorities. For any seller, this is a good time to be honest on your tax forms – the sweat inducing word audit comes to mind.

But let’s say you’re not a seller but instead an art buyer. When you purchase something in one state and then use it in another you often trigger a “use tax”. Maybe you purchased from an out of state vendor, ordered online or over the phone or you bought art out of state or country. As Mary Pat Kohberger of Deloitte Tax LLP points out, some states have a “use tax” entry on individual income tax returns for state residents. Others have individual forms that must be filled out separately. It’s important to note that many states are clever and monitor shipments traveling through customs. There’s that word again, audit.

The take away is that art buyers and sellers should always do their homework when buying art. Just because you haven’t paid tax on a piece of art does not mean you’re off the hook.

But on the other hand, as Kohberger points out, you might find that you’re eligible for tax exemptions. The key is to educate yourself and/or find an expert to help. US tax laws vary state by state – which means there are a lot of varying tax laws.

Whether you are an art buyer or a seller, check out this webinar on Sales and Use Taxes to learn more. Watch Now!

Storage, conservation, and cataloging needs create special problems for the visual artist’s estate. It is important to separate artistic property from other physical possessions. — Barbara Hoffman, Attorney

I am frequently called upon with respect to the planning of visual artist’s estates, particularly as it concerns the development and preservation of the artist’s legacy. Whether creating artist endowed foundations during the artist’s lifetime or planning for a legacy after death, preserving a legacy will involve management of intangible assets such as copyright as well as the physical body of work left behind.

The Internet has the ability to make exhibitions and archival material available to a global public. Artists, artists’ foundations, artists’ trusts and estates and archives may hold valuable intellectual property assets, which with careful management can promote the artist’s reputation, provide revenue streams, and benefit society by providing visual images for study, research, and education.

For example, the Willem de Kooning Foundation in its public 990 tax form for June 2006 derived $44,579 from licensing royalties. The 990 describes how its revenue-raising activities are related to its exempt purpose. The foundation states, “Royalties from the licensing of reproductions and/or publications of Willem de Kooning constitute some of the means by which the Foundation currently accomplishes its exempt purpose. Its exempt purpose is to preserve the artwork of Willem de Kooning, and provide access thereto; to create and maintain an archive of artworks and reference papers relating to Willem de Kooning and provide access to the archive to scholars for research; and to educate the public about the art of Willem de Kooning and art in general.”

The “mother” of licensing foundations is The Andy Warhol Foundation for the Visual Arts. Since 2004, The Andy Warhol Foundation for the Visual Arts has seen significant growth and development in its licensing program.

Licensed products designed from Warhol images have appeared in prominent publications such as Italian Vogue, Interview, and i-D Magazine. The foundation was nominated for International License of the Year by the Licensing Industry Merchandising Association, competing against major properties such as Harry Potter and Spider Man. The line of Andy Warhol products, including clothing, housewares, stationery, and other items, is well established and successful in Europe, and will soon move aggressively into the North American market with a new line of products for the home. Annual revenues from licensing are estimated at approximately $19 million per year.

Copyright and other intellectual property rights should be specifically discussed and addressed in any visual artist’s estate plan with respect to the dual benefits of minimizing estate taxes and building a legacy. As I use the term, “visual artist” includes those who create images—photographers, painters, multi-media artists, graphic artists, computer artists, performance artists, and filmmakers. There is no one correct solution. Strategies will in part depend on the medium of expression, the importance of licensing to the medium, and whether works exist in editions, are intended to be unique, or are plans for yet unrealized works.

Some Thoughts on a Checklist for Copyright and Intellectual Property Management in Estate Planning and Administration:

• Inventory copyright interests and other intellectual property assets; record all assignments, exclusive licenses, nonexclusive licenses.
• Create art image and likeness usage checklist for prospective licensees/usages.
• Plan for unified management of artistic and intellectual property and identify future owners of artistic property, secondary materials like journals, photographs, letters, and copyright interests in both categories.
• Consider various options for copyright licensing management.
• Consider moral rights (statutory and contract).
• Create organizational  documents for foundation, basic licensing forms, artist/gallery consignment agreements.
• Seek out and enter into agreements with art critics, art historians, or galleries for preparation of catalogue raisonné of all or part of a body of work.
• Provide testamentary instructions and guidance concerning copyright exploitation of works of art in the estate.
• Consider contacts with museums as recipients of works and archives.

Determining the copyright status of works created before 1978 may prove complex; however, normally, an artist’s foundation or estate will own the copyright in works created after 1978, unless the work was created as a “work for hire” or the artist assigned the copyright in writing or published the work without notice prior to March, 1989, and failed to correct the omission as permitted by the 1976 Copyright Act. Nevertheless, the foundation, estate, or archive must use due diligence to establish the copyright status of works. Particularly, photographic collections may have multiple layers of authorship (i.e., the “author” of the photograph and the “author” of the original work). In addition, certain works of art may implicate rights of privacy and publicity of a depicted subject.

Various Options for Copyright Licensing

Under Section 106 of the Copyright Law of 1976, the copyright owner has the exclusive right to (1) reproduce the work in copies or phonorecords, (2) prepare derivative works based on the copyrighted work (which includes the right to recast, transform, or modify), (3) distribute copies by sale or other ownership transfer, or to rent, lease, or lend copies, (4) perform the work publicly, and (5) display the work publicly.

Ownership of the bundle of intangible rights comprising copyright is separate and distinct from ownership in the work of art.

Under current law, absent a writing expressly conveying copyright, the sale, gift, or transfer of the original work of art does not transfer the copyright in the work of art. Under the 1976 Act, copyright interests can be transferred inter vivos or at death and in whole or in part. For example, a copyright owner can transfer all the rights or one or more of the exclusive rights or a full or undivided interest, or a divided interest in the copyright. A copyright owner may license or assign copyright in the work in a number of ways: by the type of use and/or media, by an exclusive license or nonexclusive license, by territory or duration, to name only a few possibilities.

Many artists’ foundations will have as part of their mission the organization of exhibitions, publications, including catalogues and books, and other activities to promote an understanding of the work of the artist and enhance his or her reputation. Each of these activities involves careful management of copyright.

Digital technology has provided the basis for a number of models for the licensing of images both for profit and not for profit. Artists, their archives, estates, and foundations should carefully review and negotiate any licensing agreements particularly for consistency with the foundation’s mission.

[CAVEAT: The artist and his or her advisors should be wary of any grant of a perpetual license and in any license agreement define precisely and narrowly terms such as “educational,” “noncommercial,” and “publicity or public relations.” Such terms are terms of art and derive meaning from industry practice and context.]

Those who manage and administer an artist’s copyrights should consider and develop a rights and reproduction policy.

If scholars cannot have access to or use photographs of an artist’s work because of excessive usage fee or because of censorship of their writings, scholars and art writers will no longer write about the artist or use images of his or her work.

A version of this article originally appeared in the 2008 Supplement of A Visual Artist’s Guide to Estate Planning sponsored by the Marie Walsh Sharpe Art Foundation and the Judith Rothschild Foundation. You can read the Supplement, as well as the original Visual Artist’s Guide to Estate Planning on Barbara Hoffman’s Website: http://www.hoffmanlawfirm.org/Publications/. See also “Reflections on the Survey and Other Musings on the Management of Artists’ Foundations and Museums” in the 2008 Supplement.

Founded in 1985, the Hoffman Law Firm is the preeminent art law boutique, recognized globally by artists, galleries, countries, collectors, museums, creatives, and explorers as the leader in the field of art, sustainable cultural heritage, and intellectual property law.

* © 2017 Banco de México Diego Rivera Frida Kahlo Museums Trust, Mexico, D.F. / Artists Rights Society (ARS), New York

Pronounce the word “art”, to conjure up the image of an intellectual and sensitive practice reserved only to the upper class and aristocracy. A sacred aura still attaches to the word. Yet the notion of art as elitist is decades out of date. So out of date, in fact, that a new paradigm is emerging, and has been since about the turn of the millennium. The essential nature of art and the importance of creative expression have not changed though, it has just begun to expand and become more accessible and more democratic. As a result, the process by which art is now been commercialized results in a legitimate questioning regarding the massive offer and the necessity of trustworthy art advisors.

This paper examines the art market consequences resulting from art’s democratization and responds to the research leveled by Deloitte’s Art and Finance Report 2016 which states that “The art market is opening up to new audiences –this is the biggest challenge, but is also the biggest opportunity.

Democratization of art does not mean dumbing won; it means increasing access. But at the same time, the increase in the offer makes more difficult to find trustworthy expertise.

To tackle this situation, first, we need to briefly analyze, how we got to this point? The conception of democratized art is at least as old as the French Revolution of 1789. By the mid-1800s, an understanding of museums as educational institutions was attracting increased attention both as a means of countering the social impacts of industrialization and urbanization, and of fostering positive and progressive social change; resulting in the introduction of free admission and open-evenings. The social potential and even moral virtue of engaging with art and museums during the 19th century became more popular between 1895 and 1905 when the narrative of “bringing art to the people” or the democratization of culture emerged in France.

Once again, these ideas were embraced, but this time by the artists themselves during the mid-1900s; though contemporary manifestations of art’s social mission only emerged during the post-World War II economic boom.

The growth of the middle class, in conjunction with postwar immigration and emerging patterns of social exclusion, obliged the state to play a key role in the pursuit of culture’s social mission. Furthermore, artists began inserting themselves into pop-culture and mass media formats for disseminating information and accessing wider audiences, beginning to revolutionize the idea of the art inserted in the everyday life.

The artwork’s unlimited visual exposure given by the museum and Internet’s democratic access maximizes the number of potential buyers, whose ownership desire over the masterpieces raises considerably their price tag. The expanded competition among buyers, the multitudinous offer, and the vastly increased speed of the art market, has led to many of the most active collectors to employ professional art advisors to help them sort out the opportunities and help them to make a decision.

The tradition of advising art collectors is actually quite long and distinguished. Some great art advisors include no only famous connoisseurs like Bernard Berenson, but also great artists like Marcel Duchamp, who helped to build some of the greatest collections such as the Peggy Guggenheim Collection.

Nevertheless, not everything in life is like a bowl of cherries. Since there is no necessity of a degree or license to operate, the art advisory practice is being saturated with unqualified practitioners. As long as good jobs remain scarce, it is likely that more and more people with talent and connoisseurship –and some with the lack of both– will find their calling as art advisors. Occasionally, the art advisor is also an art dealer with whom the collector has a close relationship. There is a growing bank of professional art market advisors, some of whom are former professors, auction house staffers, or even people without any real qualifications except the ability to get along with socialites and millionaires. In Georgina Adam’s book Big Bucks, she quotes “Anybody with an iPhone and a pair of Louboutin’s can call themselves an advisor.

The multiplicity in the art advisory offer has complicated the identification of a trustworthy expertise, which can lead to serious danger to the art investor and collector. One of the biggest menaces of an unqualified art advisor is the possibility of lacking a code of ethics, which might result into information trafficking, or being implicated in a situation with conflict of interest. With this in mind, price manipulation in the art market is easy. A collector can never be sure whether the work is being recommended on its merits, or because of the gallery bonus. And if advisers with a conflict of interest do not disclose it to their clients, they can be legally liable of breaching their fiduciary duty.

With the essentially conflicted nature of the marketplace better understood, as well as the many potential pitfalls of doing business in such an environment, the potential investor should search for a more institutionalized third-party with proven track record and impeccable reputation such as Artemundi, facilitating the identification of trustworthy art advisory.

Reliable and professional art advisory enables fresh consumers to navigate the murky waters with more confidence.

Connoisseurship is developed by seeing as much art as possible, good and bad. It involves a tremendous effort to keep moving around the world through the art fairs, auctions, museum and gallery exhibitions to keep up with the market and keep sharpening one’s connoisseurship. Art connoisseurship eventually becomes not just a profession, but a way of life.
If you are building a collection and require support of an advisor to understand the complexities of the art market, contact Artemundi here.

Whatever the reason for your art purchase, be it passion, financial investment, or a combination of the two, take insider advice from our experts. Here, we offer invaluable tips and techniques for successful collecting, including new ways to enlist specialist advice, utilising technologies and social media for your own research, and navigating art fair etiquette.

Until fairly recently, almost all art purchases, made by both seasoned and budding collectors, followed a fairly standard process, usually from a dealer, gallery or auction house.  It would often involve, at the very least, viewing the artwork in person, and would most likely extend to liaising with experts face-to-face, carrying out research into the market and finally perhaps, performing due diligence before the transaction occurred.

With the rise of art fairs, perceived by many as a more accessible environment, purchases are often predominantly passionate or emotional, meaning that due diligence can fall by the wayside during the shortened progression from the thrill of the chase to subsequent transaction.

In all instances, but especially when buying with a mind on investment, Nica Gutman Rieppi, Manager of US Operations for Art Analysis, suggests three key considerations to take into account.

The first is authenticity, the onus for which is on the seller. For added security she recommends that the sale is made “contingent on authenticity” and noted as such in the contract.

Secondly, condition. Most dealers and auction houses will produce a condition report, however the small print usually specifies that this has not been carried out by a restorer or specialised assessor. For peace of mind, consider taking your own expert, who will check for damages, as well as subsequent restoration. It is worth noting that certain contemporary artists have been known to disown works where their studio has not carried out restoration.

Lastly, material. How has the piece been made, how will the materials interact with each other over time, or age under certain conditions?  Much contemporary art has less traditional media, and understanding how to preserve the essence of the work will also help to maintain value over time.

In today’s art marketplace, there is a likelihood that those considering an online art purchase will utilise either a website, app or social media.

Artworks sold online are often more affordable, but what if the work you viewed doesn’t look the same when it arrives? Jessica Davidson, Director of Sales and Business Development at Bidsquare advises reading the return policy before hitting “purchase”, and stresses that while we are now more comfortable than ever buying art online, physical interaction can’t be replaced.

Gutman Rieppi advises enlisting the expertise of advisors, auction houses, appraisers, and other specialists in the field as it “takes levels of expertise to provide knowledge”. This is where certain developments in the online realm can assist collectors operating at all levels.  Davidson agrees, stating that research is critical, collectors should “leverage online platforms to navigate, whether buying online or from a gallery”. As well as being valuable sources of information, certain platforms, such as Bidsquare, connect users directly with specialists, rather than acting as intermediary.

Social media can be divisive, and never more so than when viewed through the lens of the art world.

On one hand, Davidson sees visual platforms “level and democratise the playing field”. Where traditionally an elite group of tastemakers dictated the market, social media has widened the audience and created a two-way conversation. Art advisor, Lisa Austin agrees, and utilises social media for research purposes, but still relies on her experience, art history training and old-fashioned pavement pounding in order to make informed decisions. While reaching a wider audience is a huge positive, the flip side of the growth of the collector as curator, is that collectors are not necessarily experts and shouldn’t be relied upon in place of those in the industry with proven expertise, such as curators, advisors and specialists.

Both seasoned collectors and those new to collecting find themselves in a fortunate position as art expertise and technology converge.  Not only do we have access to some of the greatest expertise, whether face-to-face or via online platforms, we also have the means to educate ourselves, to follow the artists that interest us, to develop our own eye and to curate our own collection.

By using these tools, investigating what we like, rather than what is hot, Austin firmly believes that it is possible to “become your own expert”.

If you would like to hear more about Habits of Successful Collectors, watch our experts at your convenience. Watch Now!

Why Should You Attend an Art Fair? What’s the Best Approach When Navigating Through a Fair? How is the Accessible Art Fair is Different from Other Art Fairs? Why did You Bring this Concept to New York City?

Join the brains behind the new Accessible Art Fair New York, Maria Van Vlodrop and Stephanie Manasseh, as they provide insights into how to navigate an art fair and get the most out of your experience.

Video recordings from the Accessible Art Fair New York – Art Talks are available to view online at your convenience. Topics cover: Where the contemporary marketing is heading, why emerging artists are a popular market for buyers, how the New York cultural scene has transformed over the years and the do’s and don’ts when it comes to sales and use tax. Watch now!

Just how dynamic is the contemporary art market? Should we expect any adjustments or corrections in the next few years? Who are the top ranking contemporary artists right now? What should first time collectors keep in mind?

Join artnet’s Post War & Contemporary Art specialist, Jacqueline Towers-Perkins, as she provides her perspective on this hugely dynamic market and on buying trends for contemporary artists including leading international artists Ai Weiwei, Damien Hirst and Jeff Koons.

To hear more from leading art market experts, access artnet’s roster of videos on new ways to collect art, the inside scoop on prices in the art world and significant art movements that shaped today’s contemporary art market. Watch Now!

It’s no surprise that failing to plan ahead can have negative tax implications and this includes your art collection. For example, in the US there is a lifetime gift tax exemption of $5,430,000. Or if you decide to give a charitable gift of art, you can be rewarded with a tax exemption. All of these avenues require carful planning as navigating the tax codes can be challenging – especially when dealing with high asset values.

Putting together a team of professionals is key to achieving a great legacy plan

You’re going to need a certified financial planner for any estate planning. But when it comes to art, you should include an art appraiser in the mix explains Xiliary Twil – art historian, collector, and founding valuation expert of Art Asset Management Group, Inc. It can also be helpful to have a curator or gallery involved as these experts can help you decide what to gift, donate, or dispose. Key to this team is an insurance specialist who specializes in art.

Another pillar to your legacy plan is to appoint an art trustee. An art trustee will know which pieces are worth preserving for future generations and which are not.

An art trustee is also going to include the family’s considerations when directing these transactions. This is where talking to your family is key. Find out which pieces of art family members cherish and which ones make their eyes burn.

Maybe one child (if you have any) may love a work that is worth only a few thousand dollars and another child wants to have a work of art worth tens of thousands. You may have to consider the monetary aspects of bequeathing works in such situations.

There is one final step with art legacy planning, and it’s one that anyone can do; buy a good art management program.

This will allow you to catalogue your collection and keep track of all the works and their values. In the event of an unexpected death, your art legacy team and family will be able to account for all of the work in your collection. More importantly your team will work to keep the taxman as far away from your art collection as legally possible.

If you have or are planning to build a collection, our webinar Art Legacy Planning – Life is Long. Art is Longer is worth the watch. Watch Now!

We do it almost without thinking about it, but what does it really mean to engage with art in the digital age, when and how did it originate? Our experts explore how technological developments have influenced art, the art market and museums in recent decades.

One of the earliest and most utilized online art companies, known to those both within in the art business and on the periphery is Artnet. Founded in 1989, Connor Williams of Artnet explains that it originally functioned as a “marketplace for prices”, for results from the major auction houses.

Prior to its inception, art specialists or those wishing to research auction results would have needed to use reference libraries, where catalogues with printed results were, and still are, maintained. In the digital age we now inhabit, not having immediate access to this information online is hard to conceive, but in the days prior to Artnet, this time-consuming, hard copy research was the only way to gather reliable data.

Today, data from somewhere in the region of 1,500 auction houses is available on Artnet, with results dating back as far as 1989. Around the turn of the millennium, a gallery network was added, soon followed by Artnet News, and in 2008, with the advent of online auctions, results for these too were included.

We take for granted that this information is constantly updated online, but it requires a constant and ongoing meticulous effort of thousands of people.

Lucy Redoglia of the Los Angeles County Museum of Art confirms. In the art world, museums were early adopters of new technologies enabling the widespread sharing of information related to their collections via the web. This early advancement can be viewed as both a blessing and a curse.

Artdex founder Jenny Park Adam has worked with MoMA on the digital advancement of what used to be hard copy information only. She has experienced first hand the constant need to update to new systems, as earlier technology and methods become obsolete and so the process starts over from scratch.

Despite the effort involved, Williams feels that the positive outcome of this increased sharing of information is that it “creates transparency”, and therefore democratization within the art world. Park Adam agrees that online platforms can bring people together in the virtual realm, in an industry, like many others, where meeting peers physically is becoming increasingly difficult.

And for those who are interested in art, and seeking to make a first purchase, but don’t feel comfortable walking into an auction house or gallery for the first time, certain platforms are designed to place the right buyers and collectors together with specialists who can guide them.

Where is the future of technology heading, in a world where we have seen the start-up and decline of many online art organizations and apps in recent years? Our experts agree that continuing to combine technology and art should remain a focus and that the art world is still surprisingly fragmented.

Technology can create consolidation, which in turn will ensure that the realm of art online continues to flourish and gain greater credibility and relevance.

Redoglia’s view is that already, social media in the museum world is providing information and virtual access for “those who may never set foot in a museum”. As Park Adam puts it, properly archived information is “helping the physical art world, not replacing” it.

To hear more from our experts, watch the online course New Tools of the Trade now! Watch now!

As the online art market continues to grow, it’s no surprise that we are seeing lots of new players. Allis Ghim from Bidsquare, a curated online auction platform, shares her insights into this dynamic market; where it’s heading, who’s driving the growth, what online tools are available and how businesses are evolving to keep up.

What have we learnt from the online art market in 2016?
A sizable chunk of the art market is going digital. In 2014, online contributed 6% of the $59 billion sold by art galleries and auction houses. In 2015 while the global art market cooled, online sales jumped +24% to a high of $3.27 billion. This growth continues to persist in 2016 and is projected to grow to $10 billion in just a few years. In 2016 we also saw social media surpass traditional venues such as galleries and museums as a buyer’s primary source of discovery. (See last question below for more on this)

It definitely seems like the art market is shifting to online sales. There are several variations of online models out there, and it remains to be seen which one will persist. But overall, I expect the growth trend to continue as more millennials as well as older collectors realize the convenience and power of discovering and bidding, or purchasing art online.

Are we seeing more collectors buying art online?
Absolutely. Online sales jumped +24% last year, a high of $3.27 billion, and half of online art buyers have stated they expect to buy more art online in the next 12 months. The abundance of unique one-of-a-kind art, in addition to the ease of research and acquisition, makes online platforms an obvious choice for collectors eager to pursue their discovery and purchasing journeys in the most exciting and efficient way possible. If the online art market continues to grow at this rate, it’s anticipated to reach $9.58 billion by 2020. Online has expanded to include not just art, but also antique and vintage furniture, design, jewelry, couture and more. Any category that is fragmented and dominated by smaller businesses is ripe to achieve the efficiencies that online provides and attract passionate collectors. At Bidsquare we are seeing triple digit growth in online bidding activity and sales that close online and fine art is one of our largest categories.

In additional to buying and selling art, how are collectors using the web to grow, protect and maintain their collections?
Increasingly, private art collections live their entire lifespan online. Collectors are using the web to research, create, and develop their collections without the need to travel to remote biennials, fairs, and auctions. They are accessing troves of online information about storage and preservation techniques. And they are using digital and web archives to document their investments, ensuring their integrity for generations to come.

How are dealers adapting with the shift away from the traditional model of buying art?
Dealers are important — they accounted for 53 percent of total art sales by value in 2015 but many dealers are still figuring out how to engage online buyers and participate online. Some dealers have limited online resources and simply lack the technical resources and know-how. Others are loyal to the way they’ve always done business because the traditional model still works for them and they haven’t fully grasped how to established an online presence. We expect this to change, given the power of social media, and online marketplaces and auctions, and their ability to reach high-value audiences and generate sales.

Large auction houses, such as Sotheby’s and Christie’s have developed their own online platforms. Online platforms like Bidsquare are leveling the playing field for dealers and auction houses who may not have the resources or time to develop their own online platform or just want a complementary channel to increase their reach online. By giving them an online presence, Bidsquare enables dealers and auction houses to market and promote their items and auctions to an ever-expanding online audience and compete with larger players. By handling the heavy lifting of technology, online marketing, promotion and sales, a platform like Bidsquare allows sellers to focus on what they do best — evaluating, acquiring, and sharing great antiques and art. From the buyer’s point of view, easy access to great art objects and the opportunity to bid for them real-time gives them a strong compelling reason to turn to online for buying fine art and antiques.

What role is social media playing?
Social media is bringing about a sea of change in the way people view and purchase art. Today, more people encounter art through social media than they do in museums and galleries: 44.3% of young millennials and 33.8% of older millennials say they discover art on social media. Social media and mobile are doing a phenomenal job of integrating art into people’s daily lives, and this increased engagement translates into growth in online sales.

Social media goes hand-in-hand with mobile devices, so we are also seeing a surge in the number of people viewing and purchasing art on their tablets and smartphones. In fact, over 36% of Bidsquare’s traffic now originates from mobile devices and tablets.

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